employee involvement (3)

4-EMPLOYEE INVOLVEMENT

REFERENCESTotal Quality Management by Besterfield et al

Quality Planning and Analysis by Juran and Gryna

The Management and Control of Quality by Evans and Lindsay

Course OverviewIntroduction to TQMHistorical Review of QualityBenefits of Quality ManagementQuality Guru’s and their

ContributionTQM InfrastructureLeadership & Strategic PlanningStrategic Quality PlanningTQM program Implementation

TQM Infrastructure

Customer relationship

management

Leadership and strategic

planning

Human resources management

Process management

Data and information

management

Revisiting HistoryThe Taylor System (late 19th & early

20th Cen)Supervisors & Workers lacked

education required for essential decisions

Separate Planning from executionEngineers & Specialists to planSupervisors & workers to executeResults: Spectacular increases in

productivity. Wide spread acceptance

Some Draw backs of Taylor System (Later known as Scientific Management)

Workers do not understand their contribution to organizations’ mission

The work itself is monotonous & meaningless. Lacks self accomplishment

Feedback about info they need to regulate the process often inadequate

Little opportunity for workers to participate in Quality Improvement Projects

Inspectors rather than workers responsible for Quality

Human Resources

Only resource competitors

cannot copy

No organization can survive

without good people, who are

improving (Deming)

Human Resources

Management: “Activities

designed to provide for and

coordinate people of an

organization”

TQ-Based HR PracticesCommunicate the importance of

each employee’s contribution to TQ

Stress Quality related synergies through team work (a whole is greater than sum of its parts)

Empower employees to “Make a difference”

Reinforce individuals & teams with rewards & reinforcements.

Realizing Goals through…..

Promote team work and skill sharing across work units

ExamplesFedex: 4000 Quality Action TeamsBoeing airlift and tanker

operations: Over 100 integrated product teams consisting engineers, work-team, customer & supplier

Organize & manage work to promote cooperation, empowerment and innovation

Realizing Goals through…..Empower individuals and teams

to make decisions that affect quality & Cust-Satisf

Effective Performance Management, compensation, reward & recognition systems

Effective systems for hiring and career progress

Extensive investments in training & education

EmpowermentDifferent from delegation or job

enrichmentDelegation refers to distributing

and entrusting work to othersEmpowerment requires that

employee is held responsible for the whole task

People generally want to be more in charge of their jobs and careers

TeamsSource of Employee InvolvementA group of people working

together to achieve common goals

The objectiveSolve a problemImprove a processDesign a productAudit a process etc

Types of Teams

Process Improvement Teams

Cross Functional Team

Natural Work Teams

Self Directed Teams

Quality Circles

Process Improvement Teams

Includes representative(s) from each

operation of the process (Mandatory

Participation)

Improve or develop specific business process

External or internal supplier/customer could

be added depending upon location

Usually disbanded after the objective is

achieved

Cross-Functional Team

Represented by each functional

area representative (6-10

members)

May include customer or supplier

Usually temporary with the

exception of product review team

Self Directed TeamsExample of empowered organizationDiscretion to organize their work subject

to organizational work flow requirements

Team coordinator to liaison with senior management (can be rotational)

Meets daily to plan activities. Decision making usually by consensus

68% of Fortune 1000 companies use SDT

Only 10% workers are involved in them

Quality CirclesGroup of work force level

employees usually from one functional area

Voluntary participation in weekly meeting (on company time)

Select and address quality problems that occur within their department

Provided training on problem solving techniques.

Quality Circles Cont…..Pursue two types of goalsPersonal well being of the

employee: Removing frustrating issues related to work environment

Well being of the company Later on solve company

problems with focus on products and process

Benefit: Improved quality for both internal & external customers

Quality Circles: BenefitsImprove individual self respectIncrease respect b/w supervisors &

workersChanges workers’ negative attitudeReduce conflict stemming from work

environmentWorkers understand why many

problems cannot be solved quicklyInstills in workers better

understanding of product quality

RecruitmentGoal: Success of recruits on the jobRemove defects in the hiring processFocus on enthusiasm, creativity &

flexibility rather than only on cognitive ability

To apply quality principals at work all workers must have basic mathematics & logical thinking abilities

Managerial roles shift from directing & controlling to coaching & facilitating

Growth in horizontal direction more useful

TrainingCompanies committed to TQ invest

heavily in trainingOne of largest initial costs of TQ

initiativeUsually includes quality awareness,

leadership, project management, communications, teamwork, data analysis, meeting customer requirements, process analysis, waste reduction, cycle time reduction and error proofing etc

CompensationMonetary benefits possible

source of dissatisfactionObjective: Reducing un

explainable variation in payTQ focused organizations base

compensation on the market rate for an individual with proven capabilities & then make adjustments according to experience and capabilities

Recognition & RewardsCan be monetary or non

monetaryMight include trips, promotional

gifts, clothing, time off, or special company sponsored awards and events

Works better for hourly workers than for managers and technical employees

For these groups stock options are more successful

Should involve every one

Recognition & Rewards cont….Tie rewards to quality based

measurable objectives (reward for each suggestion implemented)

Publicize extensively (newsletters, wall of fame, certificates, special lunch etc)

Performance AppraisalsHow one is evaluated determines

how one performsProcess for evaluating and

generating info about employee’s effectiveness & efficiency at work

Objectives: Feedback to employees, assessing training needs, identify people for promotions etc

Performance Appraisals: FlawsFoster mediocrity & discourage

risk takingFocus on short-term measurable

resultsFocus on individuals & destroy

team workProcess is detection oriented

rather than prevention orientedUsually fail to distinguish b/w

factors that are in employees’ control and those that are not

Performance Appraisals cont…Many companies are now using 360

degree evaluationSome are replacing evaluation with

personal planning & development systems

Manager meet employees to set future expectations

Identify training needs, provide coaching and reward continuous improvement

No stigma is attached to failure. Develop each individual to the fullest

Measuring Employee Satisfaction and EffectivenessSatisfaction

◦Quality of worklife, teamwork, communications, training, leadership, compensation, benefits, internal suppliers and customers

Effectiveness◦Team and individual behaviors; cost,

quality, and productivity improvements; employee turnover; suggestions; training effectiveness